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Sensex, Nifty Open Higher; Experts Warn of Oil Prices, IPO Boom Risks (Img: Pinterest)
Mumbai: The BSE Sensex and NSE Nifty 50 began Monday’s session in the green, tracking positive cues from global markets. The Nifty opened 0.2% higher at 24,285.05, while the Sensex gained around 0.25% to open at 77,629.56.
The Indian rupee also witnessed a slight improvement, opening at 95.64 against the US dollar compared with Friday’s close of 95.70. Sectoral indices traded mixed during the early hours of trading.
Market experts believe that while domestic economic indicators remain supportive, external factors such as crude oil prices and liquidity movement could keep markets volatile.
G. Chokkalingam, Head of Research at Equinomics Research, said that rising oil prices and liquidity pressure from the booming IPO market could weigh on equities in the coming sessions.
According to him, global oil prices have increased significantly since the beginning of July, creating concerns for the domestic market. At the same time, a surge in new IPO launches is attracting large amounts of investor money, reducing liquidity available for secondary market trading.
Experts expect the market to remain volatile with a possible downward bias due to concerns around oil prices and liquidity availability.
However, Chokkalingam highlighted that domestic fundamentals remain strong. Corporate earnings growth has reached double digits, with companies reporting around 13% year-on-year growth in Q1 FY27.
He also noted that market valuations have become more attractive after a prolonged period of weakness in the Sensex and Nifty.
According to the expert, selective opportunities may emerge in the small and mid-cap segments, which could perform better than benchmark indices.
Domestic institutional investors (DIIs) have become a major force in Indian markets, with equity purchases reaching a record Rs 8.09 lakh crore in FY26. Despite this support, benchmark indices have struggled to deliver significant returns.
Experts warned investors against blindly chasing highly valued stocks, especially newly listed companies and stocks riding on market themes.
They believe that stocks with stretched valuations could face pressure if fresh liquidity slows down.
With retail participation continuing to rise and mutual fund investments expanding, the long-term market outlook remains positive, but investors are advised to focus on fundamentally strong companies and avoid speculative bets.
(Disclaimer: This article is for informational purposes only and not investment advice. Stock market investments involve risks. Please do your own research or consult a financial advisor before making any investment decisions.)
